15. PCT Program

SCE proposes and the settlement agreement recommends approval of a voluntary PCT program. This program is essentially a demand response program that would enable SCE to reduce load in specific areas if needed to maintain system reliability or respond to a local transmission or distribution emergency. SCE proposes that this PCT program would replace its existing Air Conditioner Cycling program. The settlement agreement estimates the cost of this program at $58.1 million. In another context, it might be appropriate to subject this proposal to a more rigorous cost effectiveness analysis based on a DR cost-effectiveness methodology. As discussed in Section 9.1 above, however, we have not yet adopted a cost effectiveness methodology for demand response programs in R.07-01-041. Also this program proposal is part of a settlement agreement that we find to be reasonable overall. Rather than pick apart elements of the settlement, it is reasonable to approve this program in the context of the settlement agreement based on the business case analysis. Consistent with Section L of the settlement agreement, SCE shall file an advice letter proposing a specific PCT tariff for Commission approval within 15 days of this decision's effective date. SCE shall also include a discussion of this PCT program in its amended Demand Response application in A.08-06-001.